Amazon is turning advertising into its next huge business — here's how

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Here's how Amazon sells ads, and why it has a natural edge over Google and Facebook in some areas.

For instance, say you search for the term "water bottle" on the site.

Goat Consulting, a consulting firm that focuses on brands selling on Amazon, recently did a survey of more than 2,000 Amazon users to see whether they were aware of the difference between organic product display and advertised product display."People don't even realize they're being advertised to on Amazon," he said.

Rahil Berani, vice president and director of programmatic at Digitas North America, said for items that can be bought repetitively, advertisers can suppress people who have recently purchased that product since they won't be in the market for more right away. Once some time has passed and they might be running low, advertisers can ramp up spend again.

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